P2P lending in Europe
– Here’s all you need to know

I have been investing in several P2P lending platforms from Europe since 2017 and below are my favorites. I only share investment opportunities that I can recommend.

If you are new to P2P lending, then you can also learn more about this investment opportunity below 🙂


Best P2P lending Platforms from Europe 2021

Fast Invest

What’s the best P2P lending platform in Europe?


I have been an investor in P2P lending for several years and have tested several platforms. It has given me a solid knowledge of P2P lending in Europe.

I started at Mintos back in 2017, where they had approx 30,000 investors. Now they have about 400,000 investors and are the largest platform within P2P lending Europe.

Mintos have always been my favorite platform since the beginning. They have an incredibly well-functioning platform and a very transparent approach.

I actually think most people start here 🙂

Here is a quick overview of their marketplace:

Peer to peer lending marketplace


If you want to start with Mintos or another European platform, then I recommend that you transfer money in Euro. Thus you have to have more loans to invest in.

Personally, I always use Wise to exchange currencies. They don’t have hidden fees but only a low transfer fee. I do this because I live in Denmark.

I use it every time and it’s very safe. Furthermore, you can actually open a European bank account for free at Wise.


💡 Here on my investment blog, I update every month about my returns from the platforms. You can be inspired by My Investment Portfolio.


Is P2P lending a good investment? 


Compare p2p lending platforms europe


P2P lending (Peer to Peer lending) is also called crowdlending.

A lot has happened in recent years and it is still a very fast-growing investment opportunity.

There are now several European platforms that have taken important steps towards market dominance.

It has actually become one of my favorite investment opportunities as it has provided me a solid return and diversification against other asset classes.

From a European perspective, it started back in 2005. So more than 15 years ago. Here started the first company called Zopa within P2P lending in Europe.

At the moment they only offer 4-5% in return and I don’t recommend them as there are far better options today.

Ever since this beginning, the P2P market in Europe has developed into a very serious asset class. However, I expect more regulation of platforms which gives even more credibility to this investment opportunity.

As mentioned there are many platforms today within P2P lending Europe but actually also worldwide. The Internet has made this possible.  

You can now easily lend out money directly online to the borrower and earn interest. This is great because it’s directly on the platforms and not with a traditional bank as an intermediary (middleman) 🙂

Peer to peer (P2P) loans


p2p lending loans

When you invest in loans, they are often pre-funded by the loan originator. In addition, they often keep 5-10% skin in the game (invested into the loan).

You get a fixed interest rate which is paid out on an ongoing basis together with the repayment. For some loans, the repayment is only at the end.

There are many different types of loans and loan originators, so it allows you to diversify your investment in multiple sectors and countries.


Typical P2P loans


  • Consumer loans
  • Personal loans
  • Mortgage
  • Car loans
  • Invoice financing
  • Business loans
  • Agricultural loans
  • Development Projects

I prefer to invest in personal loans, mortgages, car loans, and consumer loans.

Customize your investment


You can set specific criteria and customize them to your personal preferences.

You can do this to create good diversification or minimize risk. In addition, you can also take into account your investment horizon and desired return.

You can choose specific criteria like:

  • Loan types (Car, Business, Personal, Mortgage, Short-term, etc.)
  • Loan amount
  • Interest rate
  • Loan term
  • Countries
  • Currencies
  • Loan originators
  • Loan originators ratings
  • Buyback guarantee
  • Status of the loans

If you look into the individual platforms here on my blog, you can see my setup on each platform.

Buyback guarantee minimize risks


It has become standard that a buyback guarantee is offered. I have always used this to minimize risk.

You may not get the highest interest rate, but you have a clear repayment agreement. There is always a clear connection between your return and the risk!

Most platforms in Europe will repay your money after 30-60 days if the loan is defaulted (the borrower do not pay).

I actually still have not experienced that one of my loans were not repaid and I have been investing in P2P lending since October 2017 😎

Auto invest – function makes it really easy


It is incredibly easy to manage your investments, as most platforms offer an auto-invest function.

You, therefore, save time as you have selected certain specific criteria that fit your investment profile.

If you don’t want to select your criteria yourself, then you can also choose the pre-made strategies recommended by the platform.


Auto invest strategy


With auto-invest, the platform automatically selects loans that match your specific criteria. This happens daily.

I have always used it without any issues. Remember, however, to follow up on your auto investment setup sometimes. I do it monthly.

P2P lending returns


Annual interest rates may fluctuate based on market trends. Often they are around 10-15% annually.

You can sometimes also find loans with interest rates that are up to 17-20%. However, they are often without a buy-back guarantee and I do not recommend these. The risk is too high.

Once you have invested your money, you can basically not withdraw your money. You have entered into a loan agreement, which is locked until the repayment is finished.

However, you can resell your loan agreement to other investors in secondary markets. This will get you out of the loan agreement, but you will most likely lose money.

I think it’s a good idea to have a long-term perspective (+3 years) on this investment and not resell the loans. 

You can also invest in short-term loans if you want to invest for a short period. However, I personally do not want a specific loan type exclusively.

Another thing worth mentioning is compounding:

Compound interest is a really powerful tool to create more passive income. Below I made a great example with returns of € 1000 with 13% annual interest rate in 5 years 😎

Peer to peer lending returns

European P2P lending market size and growth


peer to peer market size

The P2P lending market is developing positively and has incredibly strong growth in size. Overall it looks very promising.

In the last 5 years, there has been a good development, but there were also challenges in 2020 due to covid-19. The market in Europe is returning and has increased growth again.

Several different research (like Transparency Market Research) is projecting an increase to one trillion U.S. dollars by 2025 worldwide. Furthermore, Morgan Stanley (US bank) has predicted that P2P lending will reach $ 490Bn in 2020.


P2P lending in Europe


The forecasts above provide a good insight into this fantastic investment opportunity currently available within P2P lending Europe.

Overall, the market has grown by as much as 42% since 2016 (Robo.cash research).

The European market is still in its infancy as an asset class and I think we will have a lot more P2P marketplaces to use within the next few years.

It’s also fast-growing in India and the Southeast Asia regions.

Pros and Cons of P2P lending


Below I have listed some pros and cons to consider.



  • Stable and predictable returns
  • Lower risks using buyback guarantee
  • Higher yield than most investments (high interests)
  • Easy to handle and understand
  • Great asset class for diversification
  • High control of the investment 
  • Auto invest with little time involved
  • Low barriers to entry (1 EUR minimum, no fees)
  • Current trends and future estimates are very promising 



  • Sometimes less liquidity than stocks, index funds, or bonds because of long time horizons
  • Not secured by any government guarantee
  • The asset class haven’t been around for a long time (since 2005 in Europe)

💡 Read more in-depth about the advantages and disadvantages in P2P lending


P2P lending reviews

You can follow my personal experiences with P2P lending in Europe here on my blog. I update every single month with the progress, cashback, special promotions, returns, news, my investment strategies, etc.

Right now I invest in Mintos, PeerBerry, Lenndy and Fast Invest.


➀ Mintos review

➁ PeerBerry review

➂ Fast Invest review

Lenndy review

➄ DoFinance review

Viainvest review

Twino review

P2P lending FAQ (Frequently asked questions)

Is there any promotion code or cashback program?


Sometimes the different platforms offer cashback. You can follow here on my blog where I share various promotions.

If you use a promotion code they pay the money within a very short time on your platform account.

Can anyone create an account on the various P2P lending sites?

Yes. You just need to be 18 years or older. You also have to go through an identification process.


Can I trust the platforms? Are they safe to use?

They use risk mitigation policies and the loan originators are regulated.

However, you shouldn’t invest only in p2p lending. You can read my blog post about how I manage my investment portfolio to minimize risks. 


How do I pay tax on my returns?

Depending on where you live, local authorities have their own tax system. You should either get local advice or contact the authorities. On the various peer-to-peer lending platforms, you can also get tax reports. You can use it to report your returns.

Are there any platforms that you don’t recommend?

I personally never invest without a buyback guarantee. Some platforms, unfortunately, don’t have this option at all and I think the risk is too high without. Platforms without this security are, for example. Bondora. 

In addition, I also look at their historical stats and other investor’s experiences.


That’s it. I hope you liked this topic about P2P lending in Europe. I will update you about this topic ongoing with new data here on the blog. 

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Peter Michael

I'm an investor and the blogger behind My Investment Blog. I write about investment, financial independence, personal finance, and personal development. I try to combine the topics and show my journey towards financial freedom.

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